Wool prices rebound at Newcastle sales

There is a renewed sense of optimism in the local wool market, heading into the second day of the Newcastle Wool Sales.

Prices were down about 20 per cent at the December sale, but they rebounded by about 5 per cent yesterday.

Elders' Newcastle wool marketing manager Craig Brennan says 6,000 bales were sold yesterday, with a further 11,000 to be auctioned today and tomorrow.

He says most of the interest is coming from Chinese buyers.

"China are still very strong in the market, mainly supplying their own domestic market," he said.

"There is still very little export out of China as far as finished product ... with problems with economic issues in America and Europe , but they are still processing a reasonable amount of wool for their own domestic market."